WASHINGTON — The Federal Reserve may expand the field of credit ratings agencies that determine the eligibility of securities pledged for loans in a government program aimed at sparking more consumer and business lending.
The Fed on Monday proposed allowing agencies that have registered with the Securities and Exchange Commission and that have experience with the securities being rated.
Doing so “would likely result in an expansion” of ratings agencies — beyond Standard & Poor’s, Moody’s Investors Service and Fitch Ratings — to participate in the Term-Asset-Backed Securities Loan Facility, the Fed said. The proposal aims to promote competition among credit ratings agencies.
The agencies have been blamed for contributing to the worst financial crisis since the 1930s. Critics contend that the agencies didn’t accurately assess risk on the sophisticated mortgage-backed securities at the heart of the crisis. Those investments soured, wracking up huge losses at banks and other financial institutions. The fallout hurt the U.S. financial system and the economy.
Under the TALF program, investors secure loans from the Fed. They use the money to buy securities backed by, among other things, auto and student loans, credit cards, business equipment and loans guaranteed by the Small Business Administration. Securities backed by commercial real-estate loans were recently added to the program.
The TALF, which started in March, is intended to spur more lending to consumers and businesses at cheaper rates. But many are still having trouble getting loans. The government said the program has the potential to generate up to $1 trillion in lending for households and businesses. Under the first phase of the program, $200 billion was available, but only a fraction of that has been requested.
The public and industry groups will have an opportunity to weigh in on the Fed proposal, which could be revised before a final version is adopted.
Relatedly, the Fed also said starting in November it will add another layer of risk assessment of all proposed collateral pledged to the TALF. The Fed said this change will “enhance” its ability to ensure that the collateral complies with Fed provisions for credit quality and transparency.
Business
Fed seeks ratings competition for lending program
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Online convenience
This tax season, the West Virginia State Tax Department is helping people understand the benefits of filing online and making them aware of the tax credits available.
“There’s a really good chance that people can save money ... and a bonus is you’ll get your refund a lot quicker,” Danny Forinash, public information officer for the State Tax Department, said of e-filing. -
J’s Supper Club: Fine dining, beautiful place
J’s Supper Club offers fine dining in an intimate atmosphere.
Business partners Janet Thompson and Janie Kerrigan opened the establishment in Fairmont at 1523 Mary Lou Retton Drive, across from the Armory, at the beginning of November. -
‘Almost like Cinderella’
When Morgantown business owner Diane Lewis was given the chance to attend the State of the Union address, “it was almost like Cinderella and being invited to the ball,” she said.
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Dan Cava’s Used Cars opens in White Hall
Dan Cava’s Used Cars invites everyone to stop by and see its selection of quality, pre-owned vehicles.
This used car lot opened for business about a week ago in White Hall along U.S. 250, by the Go Mart gas station just down the road from Dan Cava’s Toyota World. Middletown Tractor was previously located at this site. -
Finalists work toward next round of business competition
The 10 teams remaining in the 2011-12 West Virginia Statewide Collegiate Business Plan Competition are gaining “phenomenal experience.”
Those finalists were announced in December following round two of the competition, which was held Nov. 15 at the University of Charleston. -
Auto parts focus of Shaffer’s Recycling Center
John Shaffer, of the new Shaffer’s Recycling Center, loves his work and is following in his dad’s footsteps.
In November, he and his wife Kim officially started the business at 300 Jefferson St. in Fairview. After coming into town, people can find the facility by turning right past First Exchange Bank and traveling about a quarter of a mile. Residents may remember the building as the former home of Fairview Bit. -
Rider Pharmacy marking 45th anniversary
Rider Pharmacy has worked hard over the past 45 years to establish superior customer service and products.
The late Alice Bennett established Bennett’s Pharmacy in 1939 at 310 Merchant St. in Fairmont, across the street from where Rider Pharmacy is located today. -
Unemployment rate falling in most state counties
Most counties in the state have improved their unemployment rates, and this trend is expected to continue gradually in the near future.
WorkForce West Virginia recently released Labor Market Information by West Virginia County for November 2011. The report provides a county emphasis map, which is a ranking of the counties. -
Whitney Helms relocates to Les Cheveux
“Boring” isn’t a word Whitney Helms associates with her job.
Helms, who recently relocated to Les Cheveux in Fairmont, gets to do a variety of beauty-related tasks in her profession, which keeps her on her toes and makes her work interesting. -
INNOVA investing in new ethane ‘cracker’ technology
INNOVA Commercialization Group of Fairmont is helping Aither Chemicals of South Charleston keep West Virginia resources in the state.
INNOVA, an initiative of the West Virginia High Technology Consortium Foundation, recently invested $200,000 in Aither Chemicals, which is developing a new ethane “cracker” technology. - More Business Headlines
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